Owens-Brockway starts tender for Senior Secured Notes

Owens-Brockway Glass Container Inc., an indirect wholly owned subsidiary of Owens-Illinois, Inc. announced 12 June 2006 that it has launched a cash tender offer for up to USD 100,000,000 of its 8-7/8%…

Owens-Brockway Glass Container Inc., an indirect wholly owned subsidiary of Owens-Illinois, Inc. announced 12 June 2006 that it has launched a cash tender offer for up to USD 100,000,000 of its 8-7/8% Senior Secured Notes due 2009. The tender offer is scheduled to expire at 5:00 p.m., New York City time on 11 July 2006. Holders who validly tender their notes before 5:00 p.m., New York City time, on Friday, 23 June 2006, will be entitled to receive USD 1,040 in cash, for each USD 1,000 of Notes accepted for payment. The amount includes an early tender payment of USD 30 per USD 1,000 of Notes accepted for payment. Holders who validly tender their Notes after this time but before the expiry date will receive USD 1,010 per USD 1,000 principal amount of Notes accepted for purchase. Holders will receive accrued and unpaid interest on all accepted Notes up to, but not including, the settlement date. The settlement date will be promptly after the expiry date and is expected to be on or about 12 July 2006. If holders tender over USD 100,000,000 aggregate principal amount of the Notes, the amount of Notes that will be purchased will be prorated based on the aggregate principal amount of Notes validly tendered. Owens-Brockway Glass Container Inc. will finance the tender offer with the proceeds of borrowings under a new USD 1.70 billion credit facility, which will also refinance its existing third amended and restated credit facility. The closing of the tender offer will be partly dependent on the closing of the new credit facility and the availability of sufficient funds under the new credit facility.